Press Release
THE CROWN ESTATE PURCHASES PRIME WINDSOR HOTEL PROPERTY FOR £26 MILLION
23 March 2007
The Crown Estate is delighted to announce the acquisition of Ye Harte & Garter Hotel, Windsor, in a deal worth £26 million.
The vendor, a joint venture company controlled by Emma & Lewis Davis’s Central Investment Properties, is currently undertaking a £5 million refurbishment. Once finished the predominantly freehold property will comprise a 79-bedroom Victorian hotel situated opposite the historic Windsor castle. Scheduled for completion in mid-2007, this will reinvigorate the property after years of decline.
It has been pre-let to two tenants: Wagamama, who will take a standard 25-year lease of the ground floor restaurant, and Folio Hotels, with a 35-year lease of the hotel portion. The investment is projected to provide a net initial yield of 5.25%.
The purchase represents The Crown Estate’s investment strategy in action. This seeks to maximise the potential of existing holdings whilst making judicious acquisitions and disposals to secure good long-term financial performance across our £6 billion portfolio.
Jim Yates, Head of the Regional Portfolio at The Crown Estate, said: “This is an exciting purchase for The Crown Estate. It’s in contrast to most of our other investments and represents a broadening out of our regional portfolio. Whilst the hotel may be a relatively modest size, it is a good match for our current investment requirements and I believe it will deliver strong returns in the future.”
Emma Davis of Central Investment Properties said: “This is the sort of property we like to buy. At the time of purchase back in 2005, this was a tired hotel but in a fantastic location. We bought the property with vacant possession and always anticipated we would find great tenants and an investment purchaser that wanted to buy what is arguably the best location in Windsor.”
The Crown Estate were represented throughout by Cluttons with Forsters handling the conveyancing and Christie and Co providing specialist advice.
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